Which of the Following Is True Regarding the Representation of the Sales

question 6

Multiple Choice

Which of the following is true regarding the representation of the sales representative that the boats at the dealership were the best in the state?

• A) The statement constituted an express warranty but not any other type of warranty.
• B) The statement constituted a warranty of merchantability but not any other type of warranty.
• C) The statement constituted an implied warranty of fitness for a particular purpose but not any other type of warranty.
• D) The statement was opinion and did not establish any type of warranty.
• E) The statement established both a warranty of merchantability and a warranty of fitness for a particular purpose, but not any other type of warranty.

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Definitions:

Break-Even

A situation where cumulative expenses and revenues balance out, leaving no profit or loss.

Sales Dollars

The total revenue generated from goods or services sold by a company, measured in dollars.

Common Fixed Expenses

Expenses that do not vary with production volume and are shared across different segments or products of a business.

Variable Costing

An accounting approach where only variable manufacturing costs are included in the cost of goods sold, excluding fixed manufacturing overhead.